Clear Water Corp. issued $100,000 of 7% 5 year convertible bonds on January 1, 2015. The bonds were issued at 104 and pay interest on June 30 and December 31 of each year. By December 31, 2018, the market price of the stock had increased, and the investors decided to convert the bonds into stock. Each $1,000 bond is convertable into 30 shares of the $2 par value common stock. Determine the balance of the Premium on the bonds and prepare the journal entry to record the conversion of the bonds. (two questions)     GENERAL JOURNAL                 POST     Date Account/Description REF. Debit Credit

Q: On December 1, 2020, the ABC corporation issued 500 bonds with a par value of $ 1,000 at 9%, at 103.…

A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…

Q: On May 1, 2022, Marly Co. issued €500,000 of 7% bonds at 103, which are due on April 30, 2032.…

A: Bonds payable is a form of liabilty for the business, on which regular interest payments needs to be…

Q: On January 1, 2016, Saul Company issued convertible bonds with a face amount of P 5,000,000 for P…

A: It is the amount liable to the bondholders by the issuer of bonds. These bonds payable will be…

Q: On July 1, 2020, Tuttle Company had bonds payable outstanding with a face value of $350,000 and a…

A: Journal entries refers to the systematic documentation of the financial transactions of a company in…

Q: On August 1, 2016, Limbaugh Communications issued $30 million of 10% nonconvertible bonds at 104.…

A: a) Step 1: Prepare the journal entry to record the issuance of the bonds by Limbaugh

Q: 1. Prepare the journal entries on August 1, 2022, to record (A) the issuance of the bonds by United…

A: Bonds give the investors more rights than those of common stock holders. Bonds can be of 2 types…

Q: On January 1, 2017, Sydney Inc. issued P 5,000,000 face value, 5-year bonds at 109. Each P1,000 bond…

A: Compound financial instruments are instruments that have both debt and equity components. Both the…

Q: On January 1, 2016, Gless Textiles issued $12 million of 9%, 10-year convertible bonds at 101. The…

A: 1.

Q: Kingbird Inc. issued $2,100,000 of convertible 10-year bonds on july 1,2020. The bonds provide for…

A: a. % of bond converted = $210,000/$2,100,000 = .10 or 10% Period of Amortization = 10 x 12 = 120…

Q: On July 1, 2008 Samantha Corporation issued 2,000,000 of 7% bonds payable in 10 years. The bonds…

A:

Q: On December 31, 2012, Tree Company issued 5,000 of its 12% P1,000 face value bonds at 110. The bonds…

A: A bond is a financial instrument issued by needy company or govt. or organization  for lending money…

Q: On December 31, 2021, Glimmer Company had outstanding P3,000,000 8% convertible bonds that mature on…

A: Requirement: conversion of bond into ordinary shares and asked to calculate share premium as a…

Q: On April 1, 2017, Seminole Company sold 15,000 of its 11%, 15-year, $1,000 face value bonds at 97.…

A: “Hey, since there are multiple questions posted, we will answer first three questions If you want…

Q: Required:   1.         Present all journal entries to be prepared, in proper format, on July 1,…

A: SOLUTION IN THE BOOKS OF STEELIX CORPORATION

Q: On December 31, 2016, ABC Corp. issues $50,000,000 of 5%, 25-year, convertible bonds for total…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On January 1, 2021, This Company issued 12%, 3 year, P4,000,000 convertible bonds at 110. Each…

A: Working note: Computation of equity portion of financial liability:

Q: On April 1, 2020, Seminole Company sold 15,000 of its 11%, 15-year, $1,000 face value bonds at 97.…

A: Since we only answer up to 3 sub-parts, we’ll answer the first three. Please resubmit the question…

Q: Irbid Corporation issues 3,000 convertible bonds at January 1, 2018. The bonds have a three year…

A: Bonds are instruments which companies and government uses to raise money. It is simply a debt to the…

Q: On January 1, 2021, Silay Company issued 2,000 convertible bonds. The bonds have a 3 year term and…

A: Carrying amount of the bond states the net value among the face value of the bond plus or in…

Q: On January 1, 2017, Shredder Company issued its 10%, 4-year convertible debt instrument with a face…

A: A compound instrument refers to the security that has the qualities of financial liability and…

Q: n December 31, 2011 Balance Sheet, what is the carrying amount of Bonds payable? b. What is the fair…

A: Balance Sheet is defined financial statement which is prepared at the end of the financial year to…

Q: On January 1, 2020, James Bond Co. issued ₱4,000,000 of 12% bonds payable maturing in 5 years. The…

A: Share warrants are like options which give holder the right, but not an obligation to buy the shares…

Q: . On January 1, 2021, Bean Counters Co. issued a $10 million, 8%, nine-year convertible bond with…

A: Initial measurement: 8% Convertible bonds = $9,400,475 Equity component = Issue proceeds -…

Q: On April 1, 2020, Cat Company sold 12,000 of its ₱1,000 11%, 5-year face value bonds at 96. The…

A: Total discount on bonds issue = Face value of bonds x (100- issue price)/100 = ₱12,000,000 x (100 -…

Q: On February 1, 2009, Alpha Company issued 5,000 of its P1,000 face value bonds at 110 plus accrued…

A: Formula: Net amount received from the issuance of the bonds = Issue value of the bonds + Accrued…

Q: What amount of share premium on the issuance of the shares as a result of the exercise of the…

A: The determination of amount of Share Premium on the issuance of shares as a result of the exercise…

Q: On December 31, 2006, Moses Company issued P5,000,000 face value, 5-year bonds at 109.  Each P1,000…

A: Given data, Face value of bonds=P5,000,000 Interest rate on bonds =11% prevailing market rate of…

Q: The date is January 1, 2018. Nomi Corporation issued 4,000 five-year bonds of 10% P1,000 face value,…

A: Issued  value of bonds = 4000 having  face value  = P1000 Number of bonds = 4000/1000 =4 bonds

Q: On July 1, 2020, Tuttle Company had bonds payable outstanding with a face value of $100,000 and a…

A: The book value method is a method for recording the conversion of a bond into stock. To put it in…

Q: Garr Co. issued $6,000,000 of 12%, 5-year convertible bonds on December 1, 2018 for $6,025,480 plus…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In April 2007, Blood corporation issued 3,000,000 of 10% nonconvertible bonds at 102 that are due on…

A:

Q: On May 1, 2014, Payne Co. issued $900,000 of 7% bonds at 102, which are due on April 30, 2024.…

A: Issued Price of Bonds ($900000 * 102%) $9,18,000 Number of bonds issued ($900000 / $1000) 900…

Q: On January 1, 2016, Cooper Corporation issued $800,000 of 12.5% bonds due January 1, 2023, at 102.…

A: Bond might be issued at the discount or premium with the attached warrant to it and warrant holder…

Q: Kingbird Inc. issued $2,100,000 of convertible 10- year bonds on july 1,2020. The bonds provide for…

A: In journal transactions are recorded chronologically and information regarded financial transaction…

Q: Volker Inc. issued $2,500,000 of convertible 10-year bonds on July 1, 2012. The bonds provide for…

A: Bonds are debt instruments allotted by the company to the investors with the intention to raise…

Q: On May 1, 2014, Payne Co. issued $900,000 of 7% bonds at 102, which are due on April 30, 2024.…

A: No of warrants=900*20 =18000

Q: On January 1, 2016, Madison Products issued $40 million of 6%, 10-year convertible bonds at a net…

A: Requirement 1:Prepare the journal entry to record the issuance of convertible bonds.

Q: Volker Inc. issued $2,500,000 of convertible 10-year bonds on July 1, 2020. The bonds provide for…

A: a) Prepare the journal entries as on August 1, 2021.

Q: Prepare the journal entries to record the conversion, amortization, and interest in connection with…

A:

Q: During 2016, Royal Corporation issued at 105, two hundred of its 8%, P 1,000 bonds in ten years. One…

A: Bonds: Bonds are one of the tradeable security in the stock market that provides fixed rate of…

Q: ature in six years, and interest is paid semi-annually on June 30 and December 31. The bonds were…

A: The bond will mature on the maturity date, and the issuing company would pay the debt holder the…

Q: On January 1, 2016, Scutaro Company issued 10-year, $200,000 face value, 6% bonds at par (payable…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: On January 1,2020, Martinez Corporation, which follows IFRS, issued a series of 500 convertible…

A: IFRS 9 "Financial instruments" deals with accounting and measurement of a financial asset or a…

Q: a) April 1, 2011, to record the issuance of bonds b) September 30, 2011, to pay interest and to…

A: April 1, 2012 Cash A/c dr 16,000,000      To 20 year 10% Bond 16,000,000 (To record Issue of bonds)…